Albania made the transition from a one-party communist state to an electoral democracy when it held elections in 1992. After periods of unrest in the 1990s, the country has achieved relative economic and political stability. The progress has resulted in collaboration agreements with the EU and a NATO membership. Corruption is widespread in Albania and represents a serious constraint to business development. However, several reforms to improve good governance have been enacted and may lead to progress in fighting corruption.

Positive developments in relation to corruption and investment:

• Tax administration has now been revised to reflect international standards and changes have reportedly already been witnessed. The reform has organised tax administration through clear administrative lines and audit processes are in place that work as a deterrent for tax officials to engage in corruption.
• Public bids are accessible for free on the Public Procurement Agency website and bids can be submitted electronically as well.
• E-governance is widely employed in the service administration, also as a consequence of donor aid.

Risks of corruption:

• Compared to the regional average, Albania is the country where the highest percentage of companies expect to give gifts in order to get a government contract.
• Petty corruption is reportedly widespread - the majority of household respondents in a 2009 survey report that they had to pay a bribe on at least one occasion during the year.
• Broad immunity provisions for judges, members of parliament, and other high level officials hamper the government's ability to prosecute high-level corruption.